By Maximilian Clarke
Boardroom representation of lower paid workers may be the key to curtailing increasingly high levels of executive pay, the Trades Union Congress (TUC) have said ahead of the latest round of bank bonuses.
To highlight the extent of the income disparity, TUC figures show that the ratio of top executive pay to average employee pay has increased from 47:1 in 2000 to 102:1 in 2011. Unless action is taken pay inequality will get worse, says the TUC.
“With ordinary workers suffering the sharpest fall in living standards in a generation it's completely unacceptable for those at the top to continue awarding themselves huge and unjustified pay rewards that bear little correlation to performance,” comments General Secretary Brendan Barber.
“Introducing worker representation would bring a much-needed dose of economic reality to company pay decisions. It already operates successfully across much of Europe and it's about time the UK caught up.
“We've had years of tough rhetoric from politicians on excessive pay and still no decisive action. Introducing worker representation on remuneration committees into the UK would be an excellent start.”
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